At the end of Monday's trading, Dow had advanced 19.4 percent since March 11, when the rallies began, while the Nasdaq had gained 26.2 percent and the S&P had added nearly 22 percent.

Boeing rose $1.21 to $34.38 Tuesday after Banc of America Securities upgraded it to "buy" from "neutral."

Jones Apparel advanced $1.70 to $29.40 after Merrill Lynch raised its rating to "buy" from "neutral."

Bargain hunters gave Freddie Mac a boost, sending it up $1.54 to $51.80, having plunged $9.61, or 16.1 percent, on Tuesday when it announced the departure of its top three executives and that it was restating three year's worth of earnings.

The Russell 2000 index, which tracks smaller company stocks, rose 3.31, or 0.7 percent, to 448.10.